Analysis of Strong Performance and Sustainability Judgment of Aerospace Huanyu (688523)

The strong performance of Aerospace Huanyu (688523) is mainly driven by the overall outbreak of the commercial aerospace sector [0]. At the policy level, the China National Space Administration issued the “Action Plan for Promoting High-Quality and Safe Development of Commercial Aerospace (2025-2027)” in November 2025 and established the Commercial Aerospace Department. In December, the Shanghai Stock Exchange released IPO guidelines for commercial rocket enterprises, forming intensive policy support [3][5]. On the industry side, the successful launch of low-orbit satellites for satellite internet by the Long March 8A carrier rocket and the technical breakthrough of the reusable carrier rocket Zhuque-3 by Landspace further catalyzed the sector’s popularity [4][5]. The sector linkage effect is significant: since its launch on November 24, 15 stocks have doubled, and Aerospace Huanyu, as a core target, has benefited obviously [3].

From the technical perspective, the stock price rose from 42.35 yuan to 55.96 yuan between December 25-31, with a cumulative increase of 32.14%. On December 31, it rose 14.55% in a single day, with a turnover rate of 33.04%, far higher than the average level of the STAR Market [1]. Capital flow data shows that northbound funds net bought 26.7416 million yuan, and institutional seats participated actively [1].

In terms of fundamentals, the company’s total market value is 22.769 billion yuan. Its core businesses include aerospace communication products, aerospace products, and aerospace process equipment. Among them, aerospace products increased by 963.53% year-on-year in the first three quarters of 2025, but overall net profit only increased by 0.56% [0]. The current TTM PE exceeds 200x, far higher than the industry average, with great valuation pressure [2].

1. Sustainability of sector market depends on policy implementation and industry progress
   : Policy support clarifies the long-term direction of the industry, but the subsequent sector trend needs to focus on the landing rhythm of commercial aerospace projects and the profit release of enterprises.
2. Short-term increase and valuation deviate from fundamentals
   : The rapid growth of aerospace products has not yet translated into a significant increase in overall net profit, and the current high valuation is more driven by concept speculation.
3. Capital sentiment is the core factor for short-term fluctuations
   : High turnover rate and institutional participation in the Dragon and Tiger List indicate亢奋 market sentiment, but the abnormal stock price fluctuation announcement reminds of short-term risks.

• Risks
  : Overvaluation (PE over 200x), slow profit growth, sector speculation cooling risk, stock price fluctuation risk [2][1].
• Opportunities
  : The commercial aerospace industry has broad long-term development space, and the company’s core business has growth potential under continuous policy support [3][5].
• Priority Assessment
  : Short-term risks (high valuation, fluctuation) are the main concerns; long-term opportunities need to be judged based on performance fulfillment.

Aerospace Huanyu’s strong performance is catalyzed by both policies and industry in the commercial aerospace sector. The technical side shows high capital sentiment, but there is a deviation between valuation and profit. Short-term attention should be paid to the 60 yuan resistance level and 50 yuan support level; long-term attention should be paid to the company’s profit growth and industry development progress [1][0].

[0] Ginlix InfoFlow Analysis Database, internal, quantitative market data and corporate fundamental analysis
[1] Sina Finance, https://finance.sina.com.cn/stock/aiassist/lgbzz/2025-12-31/doc-inhester3726208.shtml, 2025-12-31, Aerospace Huanyu rose 14.55%, northbound funds net bought 26.7416 million yuan
[2] East Money Stock Forum, https://guba.eastmoney.com/list,688523.html, 2025-12-31, Aerospace Huanyu discussion community
[3] CLS, https://www.cls.cn/detail/2242775, 2025-12-29, End-of-year commercial aerospace sector “takes off”: 15 stocks doubled in price
[4] The Paper, https://m.thepaper.cn/newsDetail_forward_32276720, 2025-12-30, Commercial aerospace sector continues to strengthen, Shanghai Composite Index has nine consecutive positive daily lines
[5] China Securities Journal, https://www.cs.com.cn/gppd/gsyj/202512/t20251225_6530078.html, 2025-12-24, Shanghai Composite Index has six consecutive positive lines, commercial aerospace sector leads the rise